Transforming Africa’s Minerals Trade: How Sabi is Pioneering Digital Commerce

The Rise of Sabi

In recent years, the demand for lithium, a key mineral in electric vehicle batteries, has skyrocketed, compelling nations rich in resources to rethink their extraction and export strategies. At the forefront of this transformation is Sabi, a Nigerian B2B digital commerce company that has adeptly facilitated the movement of over 100,000 tons of lithium from Nigeria, placing it among the top five exporters in the region. By digitizing an opaque and traditionally informal trade system, Sabi is empowering local merchants with tools to manage inventory efficiently, connect with suppliers, and fundamentally change how they do business.

Africa’s Untapped Potential

Africa is home to an astonishing nearly 30% of the world’s critical mineral reserves—including cobalt, lithium, and rare earth elements—yet it captures only a fraction of their potential value, estimated between 10% to 20%. Years of fragmented supply chains, under-regulation, and illicit trade have prevented the continent from achieving its full mining potential. Nonetheless, the trend is shifting, as innovative solutions like Sabi’s digital infrastructure emerge to bring transparency, compliance, and traceability to Africa’s commodity markets.

From Market Networks to Mineral Supply Chains

Founded in 2020 by Anu Adedoyin Adasolum and Ademola (“Demmy”) Adesina, Sabi evolved from an offshoot of Rensource, a power distribution venture serving Nigeria’s informal markets. Initially designed to help retailers navigate the disruptions caused by COVID-19, Sabi soon pivoted to become a full-fledged B2B platform. This transition laid the groundwork for informal businesses to access not only supplies but also logistics and financial services—essentially creating an operating system for African merchants.

“Unlike platforms such as Jumia or Konga, we focus on B2B services,” Adasolum explains. “Our mission is to curate essential services that support merchants’ growth.” With a solid foothold in sectors like Fast-Moving Consumer Goods (FMCG) and electronics, Sabi turned its gaze toward Africa’s burgeoning mineral market.

Introducing TRACE: A Digital Passport System

At the core of Sabi’s operations lies TRACE, or Technology Rails for African Commodities Exchange. This innovative system employs digital passports to authenticate and track every shipment of minerals from the mine to export. By meticulously documenting each stage’s origin, quality, and compliance with both local and international standards, TRACE ensures transparency and trustworthiness in transactions.

“Minerals require a higher standard of quality and traceability compared to finished goods,” Adasolum states. “Our platform allows buyers to understand the exact provenance of their materials.” Each shipment is accompanied by a verified “mineral passport,” creating an auditable chain of custody and tackling the persistent reputation issues surrounding illegal mining practices in Africa.

Achieving Milestones: 100,000 Tons of Lithium Exports

Sabi’s rapid growth within the lithium trade sets it apart in a competitive market. Facilitating 100,000 tons of lithium exports from Nigeria not only adds volume but signals a commitment to building a transparent supply chain. However, for Sabi, success is defined by more than sheer tonnage.

“Metrics like Gross Merchandise Value (GMV) don’t capture what we’re truly creating,” Adasolum remarks. “We’re focused on the verified materials we move and our ability to bring suppliers into compliance with international standards.” Through TRACE, the platform aggregates supply from small and mid-scale miners, enabling them to access international markets they might have otherwise been excluded from.

Engendering Trust and Opportunity

Moving beyond compliance, Sabi is dedicated to enabling African producers to confidently participate in global supply chains. Many small-scale miners struggle to meet the demand for quantity and quality from international buyers. Sabi bridges this gap by coordinating multiple producers and providing essential technical support.

“Our engagement with producers ensures they can meet quality and quantity standards needed for global trade,” Adasolum explains. This initiative aligns with broader governmental reforms across Nigeria to modernize the mining sector, revealing a collective goal to attract serious investment and promote accountability.

Promoting Development Through Capacity Building

Sabi’s impact extends beyond technology; it incorporates hands-on technical advisory and capacity-building efforts. By offering training in quality control and value addition, Sabi enhances local mining operations. In many instances, manual operations evolve into mechanized systems, leading to increased efficiency and output.

“There are communities that, just two years ago, lacked access to international contracts,” Adasolum notes. “Now, they’re supplying international manufacturers. That’s real development.”

Enhancing Africa’s Global Credibility

As the world races to decarbonize economies, Sabi’s approach significantly enhances the credibility of African minerals on the global stage. China still dominates global refining, but there’s a palpable shift as countries aim to diversify their supply chains through investments in Africa. Initiatives like Sabi’s may ultimately position the continent as a responsible sourcing destination.

“The biggest opportunity for Africa lies in traceability,” Adasolum asserts. Clear provenance enables African producers to compete effectively on the world stage, turning potential into reality.

Overcoming Infrastructure Challenges

Navigating Africa’s complex environment—marked by infrastructure gaps, currency volatility, and regulatory hurdles—poses significant challenges. “Conducting global trade in Africa inevitably involves foreign exchange risks,” Adasolum admits. However, Sabi collaborates closely with financial institutions to manage these challenges, offering a smoother trading experience for its partners.

The adoption of the traceability platform across various countries also presents scaling challenges. “Distribution is complex,” she notes. “Pioneering in this space means navigating different languages, laws, and logistics.” Yet Sabi is steadily expanding, with operations in several countries, including Nigeria, Kenya, South Africa, Zimbabwe, and Tanzania.

Future Prospects

Governments are recognizing the necessity of reforming their mining sectors, with Nigeria’s Ministry of Solid Minerals Development recently revoking nearly 1,000 inactive mining licenses. The actions underscore a commitment to accountability and sector efficiency. Sabi’s model dovetails with this momentum, ensuring miners can meet both local and international standards seamlessly.

“Our aspiration is clear,” Adasolum states. “Our mission is to secure supply chains and connect them to the right opportunities, ensuring Africa’s resources are traded responsibly and profitably for all involved.”